Every delivery on PickNDrop is backed by a platform-managed insurance fund. Here is how it works and what it covers.
How the Insurance Fund Works
When you create a delivery on PickNDrop, you declare the value of the item being sent. A fee of 3% of the declared item value is collected as an insurance contribution on every delivery. This fee is added to the delivery cost at checkout.
3% Insurance Fee
A small percentage of the declared item value is collected as an insurance contribution with each delivery. For example, an item valued at GHS 1,000 incurs a GHS 30 insurance fee.
Platform-Managed Fund
All insurance fees are pooled into a dedicated fund managed by PickNDrop. This fund is used exclusively to compensate customers for verified claims of loss, damage, or theft during delivery.
Automatic Coverage
Every delivery is automatically insured. There is no opt-in process. As long as you declare an item value at checkout, your delivery is covered by the insurance fund.
What Is Covered
Loss of items during delivery -- If your package is lost while in the rider's possession and cannot be recovered, you are eligible for compensation.
Damage to items during transit -- If your item arrives damaged due to mishandling during the delivery, the insurance fund covers compensation up to the declared value.
Theft by rider -- In cases where a rider is found to have stolen an item, the customer receives a payout from the fund. The rider's account is suspended, and their tier standing is revoked.
What Is NOT Covered
Items not matching the declared description -- If the actual item differs significantly from what was declared at checkout, the claim will be denied.
Undeclared value exceeding actual -- If the declared value is lower than the actual value of the item, compensation is limited to the declared amount.
Items prohibited by law -- PickNDrop does not insure the delivery of items that are illegal under Ghanaian law.
Damage from improper packaging by sender -- If the item was not packaged securely by the sender and sustains damage as a result, the claim will not be approved.
Claim Process
Filing a claim is straightforward. Follow these four steps to receive compensation for a verified loss, damage, or theft.
1
Raise a Dispute Within 24 Hours
Open the completed delivery in the app and tap "Report an Issue." You must file the dispute within 24 hours of delivery completion. Provide a clear description of what went wrong.
2
Platform Reviews Evidence
The PickNDrop support team reviews the rider's GPS route log, the confirmation code usage records, and the full in-app chat history. Both the customer and rider are contacted as part of the review.
3
Claim Approved or Denied
If the evidence supports the claim, the customer is approved for compensation up to the declared item value. If the evidence does not support the claim, the customer is notified with a detailed explanation.
4
Payout to Customer
Approved payouts are sent to the customer via their original payment method -- whether that is MTN Mobile Money, Telecel Cash, AirtelTigo Money, or a Visa/Mastercard through Paystack.
Tier Value Limits
The maximum insurable item value for a delivery depends on the assigned rider's tier. Higher-tier riders have completed more deliveries, maintain higher ratings, and are trusted to handle more valuable items.
Bronze
GHS 500
Maximum insurable value
Silver
GHS 2,000
Maximum insurable value
Gold
GHS 5,000
Maximum insurable value
Platinum
Unlimited
Maximum insurable value
Important Reminders
Always Declare Accurate Item Value
The declared value determines both the insurance fee and the maximum compensation. If you under-declare, your payout is capped at the declared amount. If you over-declare, the claim may be denied for misrepresentation.
Package Items Securely
Proper packaging is the sender's responsibility. Fragile items should be wrapped and cushioned. Claims for damage caused by inadequate packaging will not be approved.
Use the Confirmation Code System
The 6-digit confirmation code is your proof of delivery. Only share it with the rider upon receiving your package. Never share it in advance. The confirmation code record is a key piece of evidence in any dispute.
Questions About Insurance?
If you have questions about the insurance fund, an active claim, or need help filing a dispute, our support team is here to help.